Tag Archives: Eurasian Resources Group

ERG Metalkol to become first tailings reprocessing site to commence The Copper Mark process

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Metalkol, a facility wholly owned by Eurasian Resources Group (ERG), has officially commenced The Copper Mark assurance process.

Undertaking the assurance process reflects Metalkol’s commitment to upholding responsible and sustainable practices, in line with the principles and goals stated in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals. This is according to a letter of commitment signed by Metalkol and The Copper Mark on September 12, 2024.

The Copper Mark is a leading assurance framework launched in 2020 to address growing international demand for the responsible sourcing and production of minerals, promoting best practice across the copper, nickel, molybdenum and zinc value chains. The assurance process is a voluntary, transparent and independent award based on third-party assessments by approved assessors that will verify that Metalkol meets the requirements for responsible production practices, the companies say.

Michèle Brülhart, Executive Director of the Copper Mark, said: “We welcome Metalkol as the first tailings reprocessing site to commit to the Copper Mark assurance process. Reprocessing of mine waste is an important part of ensuring responsible production both in terms of minimising the site’s long-term impact, and maximising its efficiency.”

Nicolas Treand, CEO of ERG Africa, said: “The acceptance of our application into The Copper Mark assurance process is a significant milestone for both ERG in Africa and the whole group. Undergoing this assurance process reflects our commitment to adhere to the highest sustainability standards and contribute to the responsible development of the mining sector in the Democratic Republic of the Congo, which is essential for the future of the country and its people.”

Achieving The Copper Mark award will align with ERG Africa’s sustainable production commitments, outlined in its Clean Cobalt & Copper Framework. The Framework, first introduced in 2018 as the ‘Clean Cobalt Framework’, and extended to include copper in 2021, aims to ensure high standards of responsible cobalt and copper production, value chain assurance and improved living conditions for local communities near ERG Africa’s operations. The seven goals outlined in the framework are achieved through a comprehensive set of management systems, processes, controls and investments designed to comply with, and go beyond, the OECD Due Diligence Guidance. The framework is independently assured annually by PwC.

The framework also commits Metalkol to the Responsible Mineral Initiative’s Responsible Minerals Assurance Process for which it is already annually certified.

The Copper Mark requirements cover all material environmental, social and governance issues. Copper producers who achieve The Copper Mark certification will automatically meet the London Metal Exchange’s three responsible sourcing requirements. These include sourcing management systems, environmental management systems and occupational health and safety management systems.

ERG breaks ground on COMIDE copper-cobalt hydromet plant in DRC

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Eurasian Resources Group (ERG) in Africa has broken ground on a hydrometallurgical plant at its COMIDE asset to produce copper and cobalt in the Democratic Republic of the Congo (DRC)

The plant is designed for phased operational output, with expansion potential to produce approximately 120,000 t/y of copper cathode and 15,000 t/y of cobalt hydroxide.

COMIDE comprises some of the largest known copper and cobalt resources still to be developed globally, according to ERG. Following a technical study, the development potential of its resource base and production capacity were established, paving the way for the project at hand. The COMIDE project includes the construction of a hydrometallurgical plant, an extensive exploration and drilling program, as well as mine development – backed by a total investment of around $800 million.

The start of works was marked by a groundbreaking ceremony held at COMIDE in Lualaba Province on October 12, 2023.

The hydrometallurgical plant, which is expected to be complete by the end of 2025, will be constructed in three phases. During the first and second phases, the plant will produce an estimated 40,000 t of copper cathode and 7,000 t of cobalt hydroxide annually. The third phase is projected to yield up to 80,000 t of copper cathode and 14,000 t of cobalt hydroxide per annum, with the potential for further expansion to reach a production capacity of 120,000 t of copper cathode a year.

Speaking on behalf of ERG Africa’s Acting Chief Executive Officer, Sergei Verbitckii, Chief of Staff, Joachim Nzuzi, stated: “The design of this project was developed with innovation and sustainability top of mind. The plant will be equipped with the latest technology to ensure that we maximise recovery, while reducing the impact on the environment.”

The ERG Clean Cobalt & Copper Framework – which guides production of these two critical minerals – will be extended to COMIDE.

Nzuzi added: “Aligned to ERG’s commitment to environmental stewardship, we are not only celebrating the building of a plant and the development of a mine today. We are also committing to a greener tomorrow, not only through our approach to responsible mining and producing the critical mineral required for the green energy transition, but also by restoring the ecosystems on our site and in the surrounding areas. Thus, before we have even started construction work, we teamed up with the University of Lubumbashi to establish a nursery that will provide the trees we will plant to ensure that after our mining activities eventually cease, the site will house many more trees than before we started the project. We already have 700 trees in our nursery and are currently seeding 2,000 more.”

During the development and construction phase of the project, COMIDE will provide approximately 2,000 direct and indirect jobs for DRC nationals, predominantly hired from its surrounding communities, ensuring that its community members will be the primary beneficiaries of COMIDE’s activities, while contributing to the broader economic upliftment of the country.

Once COMIDE becomes operational, with an estimated initial 20-year life of mine, its surrounding communities will stand to benefit through direct and indirect employment and supplier opportunities, the communities’ contribution fund and royalties towards social development initiatives, in addition to the projects outlined in its community development plan agreement [Cahier des Charges] and other social contribution initiatives contemplated to be developed in the context of the operation, ERG says.

ERG looks at green hydrogen, wind, solar power as part of decarbonisation efforts

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Eurasian Resources Group is exploring the potential use of green hydrogen in its calcination kilns, as well as installing a portfolio of wind and solar power plants with an up to 6 GW capacity as part of its decarbonisation plans, according to Dr Alexander Machkevitch, Chairman of the Board of Directors.

During the plenary session of the Council for Foreign Affairs under the President of the Republic of Kazakhstan, titled, ‘Decarbonisation of the economy: Implementation of low-carbon technologies to identify environmental, social and governance settings (ESG),’ Dr Machkevitch, shared ERG’s ambitious plans to decarbonise its operations, including those with a focus on green hydrogen and renewable energy generation.

These efforts form an important part of the group’s ESG strategy and support Kazakhstan’s own national decarbonisation targets, it says.

Dr Machkevitch said: “Our environmental strategy includes around 40 projects across the group, embracing the development and application of new technological solutions such as the unique hybrid filter technology implemented at our plants together with thyssenkrupp. At ERG, we are exploring to replace fossil fuel oil in calcination kilns with green hydrogen, which can eliminate 100% of direct greenhouse gas emissions in this technological process. The group also plans to develop a portfolio of wind and solar electric power plants with total capacity of up to 6 GW.”

The group’s ESG 2030 goals include specific targets for reducing particulate emissions, waste and water use, with the three priorities being the reduction of particulate emissions by two-fold, the reduction of water consumption by a third, and the prevention of more than 2 Mt/y of CO2 emissions through the use of renewable energy sources. These activities will cost around $1.6 billion.

ERG’s decarbonisation commitments will significantly support national climate targets, it says. Kazakhstan plans to reduce national GHG emissions by 1.5% a year between 2022 and 2025, achieve a 15% reduction by 2030 and seek carbon neutrality in 2060.

Repair, Reuse, Recycle: ERG’s critical minerals reprocessing journey

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The Musonoi River Valley in the Katanga region in the Democratic Republic of the Congo (DRC) has, for some decades, been the site of land degradation resulting from inadequate and ineffective tailings and other waste management systems.

The local water system and surrounding land has been subjected to pollution from more than 83.2 Mt of legacy tailings spread over an area 11-km long and up to 2.5-km wide. Additionally, 41.1 Mt of tailings have accumulated at the Kingamyambo Tailings Dam.

Remediating and mitigating this damage is now a primary goal of Eurasian Resources Group’s Metalkol Roan Tailings Reclamation (RTR), a reprocessing facility dedicated to cleaning up the historic tailings left by previous mining operators in the Kolwezi area of the DRC. By reclaiming and reprocessing copper and cobalt tailings in the region, the company says its approach goes beyond ‘do no harm’, actively addressing a history of environmental degradation and pollution.

The legacy tailings are extracted through hydraulic mining and dredging, reprocessed and then re-deposited into a modern, closely managed and centralised tailings storage facility. This is subject to regular inspection, monitoring and reporting, supported by a dedicated Engineer of Record and an independent laboratory. Currently Metalkol RTR can produce 21,000 t/y of cobalt, which is says is sufficient for three million electric vehicle batteries, alongside around 100,000 t/y of copper, the company says.

ERG also has reprocessing operations outside of Africa, including at Kazchrome in Kazakhstan, which, it says, is the world’s largest high-carbon ferrochrome producer by chrome content.

Established in 2019, ERG Recycling – ERG’s specialised company aiming to become the largest entity to reprocess industrial waste into commercial products in Kazakhstan – has already implemented many projects including the commissioning of a new workshop that reprocesses slag, dust and other fine waste into high-quality briquettes. This program to reprocess Kazchrome’s 14.7 Mt of slag stockpiles has been expanded, now processing over 100,000 t/y of slag.

These operations have been enhanced by the development of new technology. Having completed the first trial in 2020, the Slimes 2 Tailings Reprocessing project at Donskoy GOK has the potential to enhance Kazchrome’s output of chrome concentrate by recovering 55% of the chromium oxide in chrome-oxide bearing tailings using innovative flotation technology, the company says.

In Brazil, at ERG’s integrated project, BAMIN, which produces a premium 67% Fe grade iron ore and is ramping up to become one of the country’s largest standalone iron ore exporters, the company’s transition from an upstream to a downstream tailings model ensured continued compliance with both local regulations and international standards, it said. The group continues to study additional technological enhancements to ensure the construction and operation of a world-class facility.

The environmental benefits of reprocessing projects like these are very significant for the business and critical to local communities, according to the company.

“As more attention rightly turns towards environmental, social and governance (ESG) issues, it is crucial that tailings are dealt with and stored properly,” ERG said. “Aside from preventing significant issues, such as dam collapses, by reprocessing and responsibly storing these tailings, we are reducing local pollution risks more generally, increasing air quality and decreasing the likelihood of leaching toxic substances into surrounding habitats and water systems.”

Given the legacy of environmental degradation and serious consequences it poses, it is also necessary for mining companies to explore novel ways of rehabilitating the environment.

For example, ERG has been working with a team of agronomists from the University of Lubumbashi in the DRC to look into the experimental planting of trees and their growing potential at the Kingamyambo tailings dam.

Looking forward, these operations will support the sustainable development of affordable batteries and other clean energy technologies.

By producing critical raw materials, such as cobalt, without the risk and cost of needing to develop new mining projects, ERG says it can help make electric vehicles and other renewable technologies more accessible, helping facilitating the net-zero transition.

Pictured above is Metalkol RTR, ERG’s reprocessing facility in the DRC: the world’s second largest standalone cobalt producer

NFC China, ERG agree on EPC contract to construct ‘special coke plant’ at JSC Shubarkol Komir

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Eurasian Resources Group (ERG) and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd. (NFC China) have signed an engineering, procurement and construction (EPC) contract to construct a “special coke plant” at JSC Shubarkol Komir in Kazakhstan’s Karaganda Region.

The new 400,000 t/y plant will produce a reducing agent that is key to the production of ferroalloys, ERG says.

Under the ЕРС contract, the plant will be constructed on a turnkey basis and is scheduled to be put into operation in 2023. Investments in the project will total about KZT40 billion ($94 million).

Ruslan Mulyukbayev, CEO of ERG Capital Projects, the company responsible for developing and implementing large-scale investment projects in Kazakhstan, said: “The new plant will enable JSC Shubarkol Komir to manufacture a high value-added product and cut the imports of reducing agents significantly. In addition, it should help increase local content in ferrochrome production and meet ERG’s needs by supplying a domestically manufactured product. The plant will use state-of-the-art technological solutions and automation that are fully compliant with all national standards. We plan to create 120 new jobs.”

Qin Junman, President of NFC, said: “The signing of the EPC contract marks another milestone in the long-term cooperation between NFC and ERG. I am fully confident that, with our good track record of successful implementation of a number world-class projects in Kazakhstan, including ERG’s state-of-the-art Aluminium Smelter project, we will be able to deliver another exemplary project of Sino-Kazakh cooperation within schedule, with good quality and with international HSE standard.”

In addition to 400,000 t of special coke, the new plant will produce more than 70,000 t/y of coal tar and oil from Shubarkol Komir’s coal. ERG is also exploring the possibility of exporting these products.

The new enterprise will use technological solutions to enable safe and environmentally friendly production, as well as to increase electricity, heat and water conservation, ERG says. Its ventilation system will be equipped with air purifiers. All water used in the production process, as well as the contaminated wastewater, will be treated and supplied to the water recycling system.

JSC Shubarkol Komir is already home to a special coke plant with a capacity of over 200,000 t/y that was built and put into operation in 2005. The company has implemented a project to equip the plant with the newest, most efficient system for tar removal from coke oven gas, a process which involves five-stages of treatment.

ERG’s BAMIN signs pact with Brazil Government to complete and operate FIOL railway

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Eurasian Resources Group (ERG) says its wholly-owned Brazilian subsidiary, BAMIN, has signed a concession agreement with the Brazilian Federal Government to complete and operate a section of the FIOL (East-West Integration) railway in the country.

BAMIN will advance the construction works, which until recently were carried out by the state-owned railway engineering and construction company Valec.

The sub-concession has been granted for a 35-year period, which includes an allowance of five years for the construction of the railway and 30 years for its operation. BAMIN’s investment into the railroad and the rolling stock will amount to around BRL3.3 billion ($683 million).

In April 2021, BAMIN won the auction on the B3 (São Paulo Stock Exchange) to complete and operate the first 537 km stretch of the FIOL. The concession agreement has now granted BAMIN 120 days to evaluate the progress of the construction and other related works. This preliminary phase precedes the preparation of a plan to resume the construction, which is scheduled for the second half of 2022.

Tarcio Gomes de Freitas, Minister of Infrastructure of Brazil, said: “The importance of this infrastructure project in the state of Bahia cannot be overstated. The project is very well structured and includes an iron ore plant, a railway and a seaport. The railway, which is undergoing construction, will serve the mining industry, as well as the agricultural sector, which is growing at an unprecedented pace, particularly in the west.”

BAMIN has already hired professionals in the rail industry to oversee the management of the FIOL railway. BAMIN will also leverage ERG’s international expertise as the largest transport operator in Central Asia with extensive experience in rail transportation, ERG says. Each year, ERG transports over 50 Mt of freight using 10,000 vehicles, while also maintaining and repairing 2,500 wagons and over 1,000 locomotives.

Benedikt Sobotka, CEO of Eurasian Resources Group, said: “All across the globe, railways play a crucial role in urban development, enabling people to gain access to new opportunities. In Brazil, we are confident that FIOL will act as an important connecting point between regions, cities and people, contributing to economic growth, and creating a strong link between the west and the east of the country. The logistics and exportation corridor that BAMIN will create will transport millions of tonnes of iron ore, agricultural products, as well as other goods.”

With the resumption of construction, the project is expected to boost the country’s economic growth at both the federal and the local level: FIOL will strengthen the rail network across 20 municipalities in Brazil, while also boosting foreign trade, ERG says.

BAMIN plans to install over 30 loading stations along the route, creating opportunities for regional producers, enhancing production chains, and helping establish new businesses.

Once completed, FIOL will be able to carry 60 Mt/y of freight, with BAMIN’s products accounting for a third of this capacity. More than 40 Mt of cargo will be made available for other businesses in both the mining and agricultural sector, as well as other industries in the Bahia region.

ERG said: “The importance of the FIOL railway cannot be overstated, as the railway will be part of an integrated logistics project that will connect the Pedra de Ferro mine in Caetité with the Porto Sul, currently under construction in Ilhéus, Bahia. Following the commencement of commercial operations in January 2021, the Pedra de Ferro Mine is expected to produce 1 Mt by the end of this year. Once the South Port and FIOL are completed (expected in 2026), the mine should produce 18 Mt of iron ore per year.”

Eduardo Ledsham, CEO of BAMIN, said: “The Pedra de Ferro mine, Porto Sul, and FIOL projects are an important milestone for the country’s economic development, and a source of pride for the Bahia State and all Brazilians. We are creating a new logistics corridor to integrate the west with the east of Brazil, creating a new, important exportation pathway.

“The state of Bahia will occupy a new and important place in the national economy, becoming the third largest iron ore producer in the country, generating wealth and prosperity, while also increasing the population’s income and improving the quality of life.”

Sber and Eurasian Resources Group to cooperate on metals and mining ESG standards

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Sber and Eurasian Resources Group (ERG) have signed a Memorandum of Intent to cooperate on developing environmental, social and governance (ESG) standards, including green financing instruments, for the metals and mining industry.

The document was signed by Andrey Shemetov, Senior Vice President and Head of SberCIB, and Benedikt Sobotka, Chief Executive Officer of Eurasian Resources Group.

The parties plan to develop ESG standards for the metals and mining industry, including relevant targets and metrics, and apply ESG-linked financial instruments to support mining and metals production. Sber and ERG will also collaborate on matters concerning investment and export opportunities, with ERG receiving advice and information support from Sber on ESG risk analysis.

Shemetov said: “We have been working with ERG, one of the world’s leading mineral mining and processing companies, for a long time, and this partnership has been fruitful. Mining and processing are vital to the economy, and we are aware they entail certain environmental risks. That is why it is most important that market players adhere to ESG principles.

“We welcome ERG’s willingness to evolve ESG-wise and, for our part, are ready to facilitate the development of the company’s sustainable practices while offering a variety of green products and joint projects. I am confident that this work will contribute heavily to the attainment of sustainable development goals by our companies.”

Sobotka added: “We are pleased to continue our partnership with Sber. ESG factors and sustainable development goals have been at the heart of the group’s activities for many years, while responsible ‘green’ investments for project financing are more relevant today than ever. The ethical production of the metals of the future, such as the cobalt needed to produce electric vehicles and gadgets, is essential for the transition to a green and lower-carbon economy. This is a major part of the group’s overarching mission.

“This agreement will facilitate the introduction of ESG principles into our decision-making processes as we implement innovative projects in our regions of presence. We are confident that the new collaboration with Sber will make a significant contribution to the group’s progress in this respect.”

Kazchrome achieves chrome tailings flotation breakthrough

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Engineers at the Donskoy Ore Mining and Processing Plant of JSC TNC Kazchrome, in Kazakhstan, have successfully completed trials of a first-of-its-kind industrial flotation technology to increase the enrichment of chrome oxide-bearing tailings, Eurasian Resources Group reports.

Kazchrome, the world’s largest high-carbon ferrochrome producer by chrome content with a total resource base of over 200 Mt of chrome ore, is owned by ERG.

The novel technology is part of the group’s R&D efforts to maximise chromite concentrate output and reduce the site’s environmental footprint, the company reports, with the process yielding the recovery of over 55% of chrome oxide and conforming to the applicable requirements for concentrate used in ferrochrome smelting.

As a result of these trials, the flotation technology will be used to construct a new facility to process over 10 Mt of chrome oxide-bearing tailings with a planned annual capacity of 1.7 Mt for 450,000 t/y of chrome concentrate, ERG says.

Benedikt Sobotka, CEO of Eurasian Resources Group, said: “This pioneering technology is a major milestone on our path towards ensuring sustainable and low-cost chromite concentrate supply for our operations in Kazakhstan, and is part of the group’s broader strategy to reinforce our leading position in the global ferrochrome market.”

Sergey Opanasenko, Chairman of the Management Board of ERG R&D Centre, added: “We are very pleased with the results of the flotation trials, particularly considering the complex mineralogy and physical characteristics of our ores. Building on this success, we look forward to working on incorporating this technology into the design of our new tailings processing facility.”

ERG’s BAMIN iron ore project kicks into gear

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Eurasian Resources Group says it is continuing to advance its BAMIN integrated iron ore mining and logistics project in Brazil with the planned commercial start-up this month of its Pedra de Ferro mine in Bahia.

Pedra de Ferro has an initial capacity of 2 Mt/y of high-grade iron ore with 65% Fe content, but, in full production, will be able to produce 18 Mt/y of ore.

At the same time as this, plans for the implementation of Porto Sul, a deep-water port complex that is part of BAMIN, also continue to advance.

Carried out by the State of Bahia and BAMIN, the initial works at the port (pictured) focus on the construction of the requisite infrastructure and access to the site. This phase of the work will generate 400 direct jobs and another 1,200 indirect jobs, according to ERG.

Overall, the BAMIN project is expected to see Bahia become the country’s third largest iron ore producer.

Benedikt Sobotka, CEO of ERG, said: “The start of operations at Pedra de Ferro is a fundamental step towards the full implementation of the project. Porto Sul, in addition to its strategic importance, will strengthen the local economy and support the growth of other sectors. While implementing the BAMIN project, we also aim to positively contribute to the economic and social recovery and help mitigate the long-term impact of the pandemic.”

WEF’s MMBI makes progress on emissions traceability with blockchain proof of concept

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The World Economic Forum’s Mining and Metals Blockchain Initiative (MMBI) has released a proof of concept that uses distributed ledger technology to track embedded greenhouse gas emissions.

A collaboration between seven leading industry players and the World Economic Forum, the initiative has hit an important stage of development following its launch in October 2019, the WEF said.

The successful completion of the proof of concept, named the COT, which is a Carbon Tracing Platform, will be critical in helping to ensure traceability of emissions from mine to the final product. With a focus on end-to-end traceability, the COT platform uses distributed ledger technology to track CO2 emissions.

The founding members of the MMBI – Anglo American, Antofagasta Minerals, Eurasian Resources Group, Glencore, Klöckner & Co, Minsur, and Tata Steel – joined forces in October 2019 to design and explore blockchain solutions to accelerate responsible sourcing in the industry. By pooling resources and costs, the mining and metals companies aim to accelerate future adoption of a solution for supply chain visibility and environmental, social and governance requirements.

Developed in collaboration with industry experts, supported by the Dutch blockchain champion Kryha and Consortium Advisor Susan Joseph, it not only tests the technological feasibility of the solution, but also explores the complexities of the supply chain dynamics and sets requirements for future data use, the WEF said. In doing so, the proof of concept responds to demands from stakeholders to create ‘mine to market’ visibility and accountability.

Jörgen Sandström, Head of Mining and Metals Industry, World Economic Forum, said: “There is an increasing demand for metals and minerals, and an increasing demand for sustainable and responsible and traceable supply chains. There is a potential to create a full value chain view with downstream visibility, and, in partnering with regulators and aligning our work with robust ESG standards, sustainability certification schemes and assurance frameworks.”

This work lays the foundation for the next phase of the development and reinforces comprehensive feedback sessions with stakeholders. It also supports the MMBI vision to enable emissions traceability throughout complex supply chains and to create ‘mine to market’ visibility and accountability, it said.

Nadia Hewett, Blockchain Project Lead, World Economic Forum, added: “The distributed nature of blockchain technology enables cross-enterprise collaboration and makes it the ultimate networked technology. This opens exciting new possibilities that organisations otherwise would not have the capability to deliver on their own.”

Peter Whitcutt, Marketing CEO of Anglo American, said: “By leveraging cross-industry collaboration and the increasingly important role played by technology innovation, MMBI’s Proof of Concept can help to unlock the potential of blockchain to support a greater level of reporting transparency and drive responsible sourcing.”